(Yicai) Jan. 10 -- Vanke has promised to leverage all available resources to meet its debt obligations, after bond prices plummeted yesterday on growing market concerns that the Chinese real estate giant will not be able to honor its debts amid a sluggish property market.

Vanke will continue to raise funds from various fronts to meet its maturing bond repayments, the Shenzhen-based developer, which needs to pay back CNY9.8 billion (USD1.3 billion) in principal and interest over the next three months, said yesterday. This includes collecting sales proceeds, engaging in large-scale asset transactions, exiting non-core businesses and undertaking new debt financing.

Eight of Vanke’s onshore bonds closed lower yesterday. The "22 Vanke 02" had the steepest drop, plummeting 14.36 percent to end the day at CNY56.40 (USD7.69). There are just 53 days until the next interest payment is due on this five-year bond, issued in March 2022. The bond had previously hit a low of CNY51 (USD6.96) in April last year before rebounding to CNY75. But since late December, it has been on a downward slide again.

Only four bonds managed to close higher yesterday. Vanke's publicly traded bonds are mostly priced between CNY50 (USD6.82) and CNY75 (USD10.23), Yicai noticed.

The tumbling prices reflect market concerns over the real estate giant's ability to meet its debt obligations amid a tepid property market. Vanke has 18 bonds maturing or requiring interest payments within the coming year, amounting to CNY33.1 billion (USD4.5 billion) in Chinese yuan-denominated bonds and USD423 million in US dollar-denominated bonds, according to Wind Information data.

Vanke's revenue from property sales in December was CNY23.3 billion (USD3.18 billion), while sales for the whole of last year reached CNY246 billion (USD33.5 billion).

Editor: Kim Taylor